This is not going to end well. Eventually price inflation is going to sink the economy as households are forced for budgetary considerations to stop spending money anything other than absolute essentials.
To reiterate, central bankers have extraordinary inside information on the matters of interest rates and money printing done in furtherance of propping up the equity market, so why should they be allowed to trade equities?
A prominent U.S. Senator just called the head of the nation’s central bank “dangerous.” Unfortunately, the true dangers of U.S. monetary and fiscal policy were lost on everyone involved.
The United States has descended into history’s biggest Banana Republic. Open corruption oozes from every nook and cranny in Washington, DC, Wall Street and Corporate America.
As I’ve written about extensively, we know the Federal Reserve has painted itself into a corner where it is now pressured to start tapering its quantitative easing earlier than it had been indicating.
A limited audit authorized by the Dodd-Frank Act found that between 2007 and 2010, the Federal Reserve committed over 16 trillion dollars to foreign central banks and politically influential private companies. Imagine what a full audit would find.
Coinbase, a leader of the crypto revolution has announced it's borrowing $2 Billion in dollars. Not bitcoin, dollars. Does anyone see the irony? Meanwhile, gold is already..
Gold continues to struggle but there was encouragement with an improvement in the commercial COT. Also gold is forming what appears as a potential symmetrical triangle. But is it a bottom or a consolidation pattern?
The real story is the coming HYPER-hypothecation; indeed, the Masters of the Universe may be about to pull an Evergrande, stiffing off-shore counterparties who believe their Treasuries are ‘pristine’.
